COBALT IN THE SOVIET BLOC

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CIA-RDP79-01093A000600080008-7
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December 9, 2016
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May 22, 2000
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8
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September 24, 1954
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IR
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Approved For Release 2000/0 PROVISIONAL INTELLIGENCE REPORT CIA/RR PR-76 (ORR Project 23.175) 24 September 1954 11 DECLA hIE=?:T I?EVILW DATE: RUTH: Ir 70-, CLA CLIANGED D ..~: Qr REVlEWEF1:_3(?g The data and conclusions contained in this report do not necessarily represent the final position of ORR and should be regarded as provisional only and subject to revision. Comments and data which may be available to the user are solicited. THIS DOCUMENT CONTAINS INFORMATION AFFECTING THE NATIONAL DEFENSE OF THE UNITED STATES WITHIN THE MEANING OF THE ESPIONAGE LAWS, TITLE 18, USC, SECS. 793 AND 794, THE TRANSMISSION OR REVELATION OF WHICH IN ANY MANNER TO AN UNAUTHORIZED PERSON IS PROHIBITED BY LAW. Office of Research and Reports State Dept. declassification & release instructions on file Approved For Release 2000/06/13 : CIA-RDP79-01093A000600080008-7 Approved For Release 2000/06/13 : CIA-RDP79-01093A000600080008-7 CONFIDENTIAL Because of the strategic importance of cobalt in the production of military end items, reliable information about the production and use of cobalt in the Soviet Bloc is very scarce. The purpose of this research aid is to present the data that are available, to derive estimates from them,and to formulate conclusions based on the data and the estimates and -- to some extent -- on US analogy. US analogy has been a useful aid in deriving a quantitative cobalt use pattern in the Soviet Bloc. For that reason, US data are presented in some detail. Quantitative estimates in this research aid should be considered tentative. Approved For Release 2000/06/13 : CIA-RDP79-01093A000600080008-7 Approved For Release 2000/06/13 : CIA-RDP79-01093A000600080008-7 S-E-C-R-E-T CONTENTS Page Summary' . I. Introduction . . . . . . . . . . . . . . . . . . . . . . 4 A. General . . . . . . . . . . . . . . . . . . . 4 B. Principal Uses of Cobalt . . . . . . . . . . . . . 4 1. Metallic . . . . 5 2. Nonmetallic . . . 6 II. Supply . . .. . . . . . . . . . . . . . . . . . . . . . . 6 A. USSR 6 1. Development of the Industry b 2. Reserves . . . . 7 3. Production 8 B. Satellites . 12 1. Reserves 12 2. Production . . . 15 III. Consumption and Requirements . . 15 A. USSR . . . . . . . . . . . . . . . . . . . . . . . . 16 B. Satellites . . . . . . . . . . . . . . . . . . 18 1. East Germany . . . . . . . . . . . . . . . . . . 18 2. Czechoslovakia . . . . . . . . . . . . . . . .? . 18 3. Other Satellites . . . . . . . . . . . . . . . . 19 Co Conservation . . . . . . . . . . . . . . . . . . . . 19 S-E-C-R-E-T Approved For Release 2000/06/13 : CIA-RDP79-01093A000600080008-7 Approved For Release 2000/06/13 : CIA-RDP79-01093A000600080008-7 S-E-C-R-E-T Pale IV . Trade . . . . . . . . . . . . . . . . . . . . . . . . . . 21 A. Intr.-Soviet Dioc '~ade . . . . . . . . . . . . . . . 21 B. East-west Trade . . . . . . . . . . . . . . . . . . . 22 Appendix 14.. Appendix Appendix Appendix Appendix Appendix Appendixes Cobalt in. Finland . . . . . . . . . . . . . . . 23 Cobalt-":searing Mineral Deposits in the USSR . . 25 Uses o Cobalt in the US . . . . . . . . . . 27 Methodolo8Zr . 29 Gaps in Intelligence 31 Sources and Evaluation of Sources . . . . . . . 33 Tables 1. Estimated Reserves of Cobalt in the USSR, 1939-54 . . . . 9 Estimated Production of Cobalt from Nickel Ores in the USSR, 19 53 . . . . . . . . . . . . . . . . es . . . . 11 3. Estimated Production of Cobalt in the USSR, 1948-55 . . . 4. Production of Cobalt in the USSR as Compared with Other Countries, 1952 . . . . . . . . . . . . . . . . . . . . 5. Cobalt Deposits in Communist China . . . . . . . . . . . 6. Cobalt Deposits in North Korea . . . . . , . . . . . a . 13 14 14 7. Consumption of Cobalt in the US, by Uses, 1949-53 . . . . 27 S-E-C-R-E-T Approved For Release 2000/06/13 : CIA-RDP79-01093A000600080008-7 Approved For Release 2000/06/13 : CIA-RDP79-01093A000600080008-7 CIA/RR PR-76 (ORR Project 23.175) S-E-C-R -T COBPLT IN THE SOVIET BLOC* Sunmary The production of cobalt in the Soviet Bloc is limited almost entirely to the USSR. Comunist China, North Korea, and East Ger- many are reported to have produced small quantities, but Satellite production in total has been negligible. Production of cobalt in the USSR in 1953 is estimated at 1,300 metric tons,,; a production second only to that of the Belgian Congo. Production in 1951 is estimated at about 2,000 tons, roughly 13 percent of the world's 1954 supply of cobalt. The reserves of cobalt-bearing ore -- largely nickel -- of the USSR are estimated to be approximately 49,000 tons of metallic cobalt content. Communist China and North Korea have some reserves, but available data .do not support a quantitative estimate. At the 1954 production rate of about 2,000 tons of cobalt annually, the reserves of the Soviet Bloc will permit production for a period of about 25 years. Reliable estimates of trade in cobalt and cobalt-bearing ores cannot be made. Available information indicates that intra-Bloc trade consists primarily of shipments of metallic cobalt from the USSR to the Satellites -- not more than 100 tons in 1953 -- and small shipments . of cobalt-bearing ores from Communist China and North Korea to the USSR. East-West trade in cobalt is, of course, pro- scribed under CGCOM agreements., but by clandestine transshipment. the Soviet Bloc imported an estimated 200 tons in 1953, largely from ,{lest Germany and France. \ quantitative use pattern for cobalt in the Soviet Bloc cannot be firmly established. The application of US a.nalo#;y to available data, however, permits 1953 quantitative estimates which are signif- icant, if not completely reliable. 't Me estimates and conclusions contained in this research aid represent the best judgment of the responsible analyst as of 1 July 1954. 4s, Throughout this research aid tonnages are given in metric tons, unles^ otherwise specified. S-E-C-R-E-T Approved For Release 2000/06/13 : CIA-RDP79-01093A000600080008-7 Approved For Release 2000/06/13 : CIA-RDP79-01093A000600080008-7 ' S-E-C-R-E-T The aircraft engine industry in the USSR is the largest consumer of cobalt. It is estimated that in 1953 about 2400 tons of cobalt were used in the manufacture of vanes and blades for the VK-11` jet engine, and the industry probably consumed some cobalt for other uses. The electrical industry consumed about 130 tons of cobalt in the manufac- ture of TMalnico'i magnets. About 80 tons of cobalt were consumed as binder for cemented carbides, which are used in the manufacture of High-speed cutting tools and the lil e. Other uses consumed some, cobalt, but no firm data on those uses are available, and a quan- titative estimate based on US analogy would have little significance. Total 1953 consumption of cobalt in the USSR, then, is estimated at about 600 tons. This estimate is definitely a miaimiun; it does not include cobalt consumed for uses which cannot be identified and for which quantitative estimates cannot be made. The 1953 consumption of cobalt for all purposes in Communist China and the European Satellites is estimated at not more than 300 tons. In all probability, a major portion of the end products con- taining this cobalt is returned to the USSR. Of the total 300-ton Satellite requirement the USSR supplied approximately 100 tans; the remainder is balanced by the estimated 200 tons imported by the loc from the 'eft and can be eliminated as a factor in the consump- tion-to-production ratio. The estimated consumption of 600 tons of cobalt by the USSR plus the 100 tons egorted to the Satellites indicates that 700 tons of the 1,800 tons produced in the Soviet Bloc in 1953 were actually used. Even assuming that the 700-ton estimate of consumption by the ''loc is very low, there is still a wide gap between production and consumption. This gap might well indicate an extensive stockpiling program. 1,ltho..gh the is no firm evidence of. such a program, it is logical to conclude that a metal of the strategic importance of cobalt is definitely being stockpiled. Because there is no available information on the historical background of the stockpiling program, it is impossible to make a quantitative estimate of the present Soviet stockpile. The capability of the Soviet Bloc to increase long-term production of cobalt is limited by the relatively short-term reserves. Sub- ~tantial increase of total supply by imports is presently limited nr COCOM restrictions. The capability of the cobalt industry of the Soviet Bloc in time of war, however, cannot be firmly evaluated. There is no evidence to indicate that the Bloc could not increase S-E-C-R- T Approved For Release 2000/06/13 : CIA-RDP79-01093A000600080008-7 Approved For Release 2000/06/13 : CIA-RDP79-01093A000600080008-7 S-E-C-R-E-T short-term production within 6 months or a year of any given date, and such an increase coupled with the probable stockpiled reserves might well satisfy the immediate requirements of a wartime ecgnomy. Three additional factors might affect the wartime capability of the Soviet Bloc cobalt industry. (1) Should Soviet scientists develop a satisfactory substitute for cobalt as an alloying metal, a development which is possible but probably not imminent, the demands on the supply of cobalt would be somewhat eased. (2) Soviet efforts to conserve cobalt, demonstrated by the fact that -- contra.x^r to US practice -- no cobalt is used in 'the manufacture of reciprocating engines for aircraft, might extend the cobalt supply appreciably. (3) In the event of war the USSR might take over the Finnish copper mine at Outokumpu, the ore from which is cobalt bearing, and could augment the prese;i!t total Soviet Bloc supply by about 21" percent. All three of these f actors are affected, in' turn, by the fact that increased supplies of cobalt would be partially consumed by addition- al demands for new uses. The cobalt industry of the Soviet Bloc is vu7 nerablo only to the extent that production facilities are concentrated in four refineries and to the extent that-the Bloc is dependent on imports from the Jest. A marked increase in Soviet efforts to purchase cobalt from the West or a substantial expansion of the cobalt production facilities of the Soviet Bloc would be indicators of Soviet military intentions. Considering the- ?mown reserves of cobalt-bearing ores in the Soviet Bloc and their possible augmentation by Finnish reserves, and assuming that the USSR has been stockpiling cobalt in considerable quantities since the beginning of Soviet production in 12)O, it is probable that cobalt will continue to have nigh priority on the Soviet list of critical metals. -3- S -E-C -R-E- T Approved For Release 2000/06/13 : CIA-RDP79-01093A000600080008-7 Approved For Release 2000/06/13 : CIA-RDP79-01093A000600080008-7 I. Introduction. 1. General. '?ecause cobalt is an alloyinL; .metal ecsentia1 in the produc- tion of a number of military end items -- notry.blzr ca?~;:; .res for jet aircraft -- its production, supply, and utilis^.ton in the "Quiet 21oc are cic 0 N E+ ri .d A W U 0, d en ~?i ON 1-1 kX. O F 0 C[ k ++ W S M O c- N Oo H C\t R? W OM Z ?~ O` O a) r+ ~~0.yy1 V 4) vi 43 fMA 0.'. +p yyO cV O q N +p to r.4 to ri ?N N 1 M ?O] 0 z r01 00- N O H Y to .YU, vUi In a)) U 6 .I 0 1 .9 ff P, H to V 0. a C=7 +~-~ 0~ 44 0 0 0 to a) CY. +3 Cd U Cd # m k H N N O rt~ co P C-0 a) -P +4-' N U f k a) C N O m ro p ~ ~ ?s4 a) ? ?N 0 05 +~ k N O a) t0.'. U U 0 N CH r-I sz Is O N 0 C) , U 0... r1 0 P a) b O r0+ 0 H (D opp0 O I +~ i W NE ?rrii yU) H k +; i+ Fri O ) +P ri s~ rN1 k k N V EErl~r4 0) 91 N O c yy a)?d U 0 0 +~ O W U O Q 0 y m +% O` +P +3 to ?N N 0.4 0 0 qq~~ W C: k a)O a P. N N a 0 c H ? a) 0 U U ?rl ra E Approved For Release 2000/06/13 : CIA-RDP79-01093A000600080008-7 4-1 Approved For Release 2000/06/13 : CIA-RDP79-01093A000600080008-7 S-E-C-R-E-T Since cobalt is produced in the USSR largely as a bypro- duct of nickel refining, there is a fairly stable relationship between cobalt production and nickel production. This relationship varies between the various nickel combines, chiefly as a result of the different cobalt contents of their nickel ore supplies. Standard grades of refined nickel in the USSR contain about 1 percent cobalt. 31/ Thus, by adjusting the cobalt-to-nickel ratios given in Table 1 for this 1 percent loss, it is possible to arrive at estimates of cobalt production as a byproduct of nickel production. Table 2 shows estimated production of cobalt from nickel ores in the USSR, 1953. Estimated Production of Cobalt from Nickel Ores in the USSR 1953 Plant Production of Nickel 32/ (Metric Tons) Percentage Factor Representing Recoverable Cobalt Production of Cobalt (Metric Tons) Percent of Total Monchegorsk a/ 15,000 1.7 250 16 Verkhniy UfaTey 4,000 1.5 60 4 Orsk 15,000 4.0 600 38 Norilsk 8,000 8.1 650 42 Total 42,000 1,560 100 a. Inc uudes production- rom Tech.enga ores. Table 3* shows estimated production of cobalt in the USSR, 1948-55. Table 4*-f shows production of cobalt in the USSR as com- paredwith other cobalt-producing countries in 1952. Ta'61e o lows on p. 12. Table 4 follows on p. 13. Approved For Release 2000/06/13 : CIA-RDP79-01093A000600080008-7 Approved For Release 2000/06/13 : CIA-RDP79-01093A000600080008-7 Table 3 Estimated Production of Cobalt in the USSR 1948-55 Year Production of Nickel 33/ _ Cobalt Produced from Nickel Ores Other Produc- tion b/ 3L./ Total c/ 19118 25,000 930 240 1,170 1949 29,000 1,080 240 1,320 1950 32,000 1,190 246 1,430 1951 35.'000 1000 240 1,540 1952 39,000 1,450 240 1,690 1953 42,000 1,560 240 1,800 1954 45,000 1,670 240 1,910 1955 49,000 1,320 240 2,060 a. Based on e caculations in ab2.` 3 produc ion o -cobalt from nickel ores was 3.71 percent of production of nickel. This same ratio has been applied to the other years, b. Chiefly Dashkesan, for which a steady rate of production is estimated. c. Figures are maximum estimates and may be as much as .25 percent high. B. Satellites. 1. Reserves. Communist China and North Korea are the only Satellites with cobalt deposits worthy of mention. a. Communist China. Cobalt deposits in Communist China are located mainly in Yunnan Province. Fukien Province has several small man- ganese deposits which contain minor amounts of cobalt. There is not sufficient information available to permit an estimate of Chinese cobalt reserves. S-E-C-R-E-T Approved For Release 2000/06/13 : CIA-RDP79-01093A000600080008-7 Approved For Release 2000/06/13 : CIA-RDP79-01093A000600080008-7 S -':-C-R-E-T Table 4 Production of Cobalt in the USSR as Compared with Other Countries a/ 1952 Cobalt Production b/ Country (Metric Tons) Percent of Total Belgian Congo French Morocco Northern Rhodesia Canada Us Other USSR 6,831 1, 000 585 592 379 613 1, 690 11"69o 58 9 5 5 3 5 15 a. Latest est year or which detailed data are avai ab e~5 for non-Soviet Bloc countries. Non-Bloc production for 1953 is estimated at 12,000 metric tons by the US ;2ureau of Mines. Estimated Soviet production in 1953 (Table 3) would thus be about 13 percent of world total. b. See Table 3 for source of USSR estimate; for other countries, 35/. Table 5* shows the location of the known cobalt deposits in Communist China. b. North Korea. In 1946, US Army technicians estimated North Korea's cobalt reserve at 1G22,0O0 tons of ore. averaging 0.1 percent to 0.2 percent of cobalt. 36/ It is believed that this estLmate does not include the deposit in the vicinity of Tanch+on, which was to have been exploited on a large scale. 37/ T, __Ta`b_Te__5_ T=ows on p. !4,. Approved For Release 2000/06/13 : CIA-RDP79-01093A000600080008-7 Approved For Release 2000/06/13 : CIA-RDP79-01093A000600080008-7 S E C R E T i a.'ole ; 3 ;,/ Cobalt Deposits in Com-:1- nist China. Deposit P' ing-i 25?43' N - 104009' E Pu-min 25?14' N - 102?30' E Sun.-ming 25?22' N - 103?O1' E Hsun-tien 25034' N - 103?12' E Chan-i 25038' N - 103?38' Ch'eng-kung 25?55' N - 102?49' E Chin-ring 24?44' N - 102?42' E Hsuan-.aei 26?14' N - 104?00' E Tu-nan 24?46' N - 103?l7' E Table 6 shows the location and type of known cobalt deposits in North T orea. Table 6 39/ Cobalt Deposits in North Korea w_____ Deposit Coordinates 42?25' N - 129?45' E Type of Ore Smaltite Ioeryong - Cobalt Hoeryong-gun, H arrl Tong-pukto Unsong - Nickel Tanch'on-gun, Hyangyo ng-namdo dondong - Gold Kunhwa-gun, Hwanghae-do 40?39' N - 129?01' E 38?16' N - 1.28?10' E - 14 - S-E-C-R-'E-T Cobalt, Nickel-bearing Pyrrhotite Cobaltite- Erythrite Approved For Release 2000/06/13 : CIA-RDP79-01093A000600080008-7 Approved For Release 2000/06/13 : CIA-RDP79-01093A000600080008-7 S-E-C-R-E-T 2. Production. a. Communist China. Communist China produces small quantities of cobalt ores and salts which traditionally have been used in the porcelain industry. In recent years it has exported-small quantities of cobalt pr.es arid-concentrates to the European S b ellites. The quan- tity of these exports and the level of current production are un- known. Communist China has no known facilities for the re- duction of cobalt metal. Successful experiments in extracting pure cobalt metal from Chinese ores have been announced by the China Academy of Sciences, 1i0/ and it is possible that cobalt-refinin facilities may be established. b. North Korea. Prior to 1950, cobalt was produced at the Haeju Smelting Works, National Ore Refinery, Haeju (37?51' N 125?42' E). production early in 1950 was at the rate of 1 ton a month, all of which was exported to the USSR. L1/ Haeju was bombed during the recent hostilities. 42/ It is b1ieved that production of cobalt will be restored at We earliest possible date, and that it will be used to compensate the USSR for part of its aid. c. East Germany. 1~lthoug East Germany has no 17nown deposits of cobalt, small amounts have been recovered from other nonferrous metal refining in recent years. Planned production in 1952 was 28.2 tons. L3/ It is not known whether this ?oal was attained. Plans for 173 and 1954 did not call for the production of cobalt. Li/ III. Consumption and tequirements. Only fragmentary estimates are available on consumption of cobalt in the Soviet Bloc. These estimates are given as the best available, even though they may contain sul,stantial errors. Approved For Release 2000/06/13 : CIA-RDP79-01093A000600080008-7 Approved For Release 2000/06/13 : CIA-RDP79-01093A000600080008-7 use of cobalt for norrianent mcgne-tts is so important that an estimate of So?riet cons _artion for this purpose has been :jade in spite of the involved `lethodolog,r required. .`_'he Bureau of Mines has constructed coefficients for U5 cobalt consumption in magnets for peacetime and for periods of mobilization. These coe.f:Ficients were constructed by relating the cobalt input for magnets to the dollar output of the electrical industry. It was recognized that the peacetime coefficient, 0.2921 (pounds of cobalt per ;1,000 of production, 1947 dollars), included many noncritical uses. The mobilization coefficient, 0.1619, based on 1952 conditions, was considered the better one because it included a minimum of non- essential magnet uses. The estimated value of 1953 production of the Soviet electrical industry in terms of 1947 dollars was ?;,1, 740, 000, 000. 46/ The cobalt consumption derived by appl1ring the mobilization coefficient to this figure is as follows: l,740,000 3 - - 2 20 --- 128 tons US consumption for the same year and. the same purpose was 1060 tons. There is only one known use for high-temperature, cobalt- containing alloys by the Soviet aircraft industry: the VK-lA engine.* Consumption for this purpose is estimated as follows 48/: Year 7-Ietric Tons:: 1953 400 1954 85o';H-~ 1955 1,500 1956 1, 800 The production of cemented carbides in the Lc-?R is estimated at 360 tons a year. 49/ The average cobslt content of these carbides is estimated at 22 percent. 50/ Based on these figures, the total The Soviet aircraft industry probably does not use cobalt in the manufacture of reciprocating engines. 47/ ?., This estimate does not include possible use of cobalt in the new Soviet bombers. 1954-56 estimates are based on the V'=-1.x'1 production at capacity operation. - 16 - Approved For Release 2000/06/13 : CIA-RDP79-01093A000600080008-7 Approved For Release 2000/06/13 : CIA-RDP79-01093A000600080008-7 S-E-C-R-E-T estimate for this category is 79 tons a year. US consumption for the same purpose was 276 tons in 1952 and 163 tons in 1953. Consumption data for other uses are totally lacking, and even US analogy would be meaningless. In the US these other varied uses accounted for 25 percent of the total in 1953. Soviet exports of cobalt to the Satellites are estimated at 100 tons in 1953. The remainder of the 300-ton Satellite require- ment is balanced by the estimated 200 tons imported from the West. 51/ Total estimated consumption of cobalt produced by the Bloc in 1953, then, is,, tons. On the basis of estimated production of 1,800 tons in 1953, the USSR would appear to have much more than enough cobalt for current needs. Every other indication, however, is to the contrary. It is possible that the estimate of production in 1953 is somewhat high. The average nickel-cobalt ratio given in Table 1-, is 21:1, whereas a Soviet book on cobalt lists it as 25-50:1. 52/ It is possible that this Soviet figure failed to take into considera- tion the Norilsk deposit (Economic Region XI), where, although the amount of cobalt per ton of ore is small, the cobalt-nickel ratio is much higher than'the average for the rest of the USSR. In Table 2',, the ratio of nickel to cobalt is 27:1 because of the 1 percent residual in the nickel. On the other hand, consumption by the Soviet aircraft industry may be higher than indicated. Production of the V;'-1A engine covers only one use of cobalt by the aircraft industry, and there may be others. In 1953, US consumption of high-temperature alloys was 2,400 tons, 53/ or 6 times the estimate for the USSR,. Py 1955, unless adequate substitutes are found, it is estimated that VT'-lA production will. absorb 75 percent of the .Soviet supply of cobalt. It is also possible that the estimates ;riven for supply and demand are close to the actual figures. In such a case, there is only one conclusion: that the USSR is stockpiling 500 tons to 1,000 tons of cobalt a year, out of a production of approximately 2,000 P. 9,aove . P. 11, above. S- - -C--R- ~-T Approved For Release 2000/06/13 : CIA-RDP79-01093A000600080008-7 Approved For Release 2000/06/13 : CIA-RDP79-01093A000600080008-7 C -TE-C -R-E-T tons. In corina.rison, the US consumes only about half of the cobalt it imports each year. I17ithout a substantial stockpile of cobalt the USSR would be severe]., handicapped by lack of cobalt by 1956, and before that time in the event of war. During the first year of a war, U.S consumption would be expected to increase threefold over present consumption. 54/ P. Satellites. ..ost information concerning the consumption of cobalt in the Satellites was obtained as secondary information listed in trade documents. 1. Fast Germany. The largest use of cobalt in East Germany is in the iron and steel industry. Estimated requirements for 1953 were 25.3 tons. 55/ About one-fifth of this amount is used at Stahl and 'Talzwer':, Crandenburg, for producing high-speed cutting alloys con- taining 56 percent cobalt. 56/ Cobalt oxide has been listed as a bottleneck by the chemical industry, 57/ and " ovar,":;- by the electronics industry. Planned requirement of the East German Secretariat for Chemistry (7)H 7) for the second half of 1953 was 12.728 tons of cobalt oxide, equivalent to about 4 or 5 tons of metal. The 1954 Economic Plan for 7,iauid :ru